97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1308

 

Introduced 02/09/11, by Rep. Angelo Saviano

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 80/4.22
5 ILCS 80/4.32 new
225 ILCS 458/1-10
225 ILCS 458/10-20
225 ILCS 458/15-10
225 ILCS 458/15-30
225 ILCS 458/15-65 new
225 ILCS 458/25-15
225 ILCS 458/5-21 rep.

    Amends the Real Estate Appraiser Licensing Act of 2002. Defines "address of record". Requires a licensee of this Act to retain records as required by the most recent version of the USPAP and as further defined by rule. Permits the Department to disclose information and documents related to an examination or investigation of a licensee or applicant only to law enforcement officials, other regulatory agencies that have an appropriate regulatory interest as determined by the Secretary, or a party presenting a lawful subpoena to the Department. Provides that any formal complaint against a licensee filed with the Department or an order issued by the Department against a licensee or applicant shall be a public record. Authorizes the Coordinator of Real Estate Appraisal to investigate and determine the facts of a complaint, to interview witnesses, the complainant, and any licensees involved in the alleged matter, and to make a recommendation as to the findings of fact. Makes other changes. Amends the Regulatory Sunset Act to extend the Real Estate Appraiser Licensing Act of 2002 from January 1, 2012 to January 1, 2022. Effective immediately.


LRB097 07824 CEL 47937 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1308LRB097 07824 CEL 47937 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Regulatory Sunset Act is amended by changing
5Section 4.22 and by adding Section 4.32 as follows:
 
6    (5 ILCS 80/4.22)
7    Sec. 4.22. Acts repealed on January 1, 2012. The following
8Acts are repealed on January 1, 2012:
9    The Detection of Deception Examiners Act.
10    The Home Inspector License Act.
11    The Interior Design Title Act.
12    The Massage Licensing Act.
13    The Petroleum Equipment Contractors Licensing Act.
14    The Professional Boxing Act.
15    The Real Estate Appraiser Licensing Act of 2002.
16    The Water Well and Pump Installation Contractor's License
17Act.
18(Source: P.A. 95-331, eff. 8-21-07.)
 
19    (5 ILCS 80/4.32 new)
20    Sec. 4.32. Act repealed on January 1, 2022. The following
21Act is repealed on January 1, 2022:
22    The Real Estate Appraiser Licensing Act of 2002.
 

 

 

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1    Section 10. The Real Estate Appraiser Licensing Act of 2002
2is amended changing Sections 1-10, 10-20, 15-10, 15-30, and
325-15 and by adding Section 15-65 as follows:
 
4    (225 ILCS 458/1-10)
5    (Section scheduled to be repealed on January 1, 2012)
6    Sec. 1-10. Definitions. As used in this Act, unless the
7context otherwise requires:
8    "Accredited college or university, junior college, or
9community college" means a college or university, junior
10college, or community college that is approved or accredited by
11the Board of Higher Education, a regional or national
12accreditation association, or by an accrediting agency that is
13recognized by the U.S. Secretary of Education.
14    "Address of record" means the designated address recorded
15by the Department in the applicant's or licensee's application
16file or license file as maintained by the Department's
17licensure maintenance unit. It is the duty of the applicant or
18licensee to inform the Department of any change of address and
19those changes must be made either through the Department's
20website or by contacting the Department.
21    "Applicant" means person who applies to the Department for
22a license under this Act.
23    "Appraisal" means (noun) the act or process of developing
24an opinion of value; an opinion of value (adjective) of or

 

 

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1pertaining to appraising and related functions, such as
2appraisal practice or appraisal services.
3    "Appraisal assignment" means a valuation service provided
4as a consequence of an agreement between an appraiser and a
5client.
6    "Appraisal consulting" means the act or process of
7developing an analysis, recommendation, or opinion to solve a
8problem, where an opinion of value is a component of the
9analysis leading to the assignment results.
10    "Appraisal practice" means valuation services performed by
11an individual acting as an appraiser, including, but not
12limited to, appraisal, appraisal review, or appraisal
13consulting.
14    "Appraisal report" means any communication, written or
15oral, of an appraisal, appraisal review, or appraisal
16consulting service that is transmitted to a client upon
17completion of an assignment.
18    "Appraisal review" means the act or process of developing
19and communicating an opinion about the quality of another
20appraiser's work that was performed as part of an appraisal,
21appraisal review, or appraisal assignment.
22    "Appraisal Subcommittee" means the Appraisal Subcommittee
23of the Federal Financial Institutions Examination Council as
24established by Title XI.
25    "Appraiser" means a person who performs real estate or real
26property appraisals.

 

 

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1    "AQB" means the Appraisal Qualifications Board of the
2Appraisal Foundation.
3    "Associate real estate trainee appraiser" means an
4entry-level appraiser who holds a license of this
5classification under this Act with restrictions as to the scope
6of practice in accordance with this Act.
7    "Board" means the Real Estate Appraisal Administration and
8Disciplinary Board.
9    "Classroom hour" means 50 minutes of instruction out of
10each 60 minute segment of coursework.
11    "Client" means the party or parties who engage an appraiser
12by employment or contract in a specific assignment.
13    "Coordinator" means the Coordinator of Real Estate
14Appraisal of the Division of Professional Regulation of the
15Department of Financial and Professional Regulation.
16    "Department" means the Department of Financial and
17Professional Regulation.
18    "Federal financial institutions regulatory agencies" means
19the Board of Governors of the Federal Reserve System, the
20Federal Deposit Insurance Corporation, the Office of the
21Comptroller of the Currency, the Office of Thrift Supervision,
22and the National Credit Union Administration.
23    "Federally related transaction" means any real
24estate-related financial transaction in which a federal
25financial institutions regulatory agency, the Department of
26Housing and Urban Development, Fannie Mae, Freddie Mae, or the

 

 

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1National Credit Union Administration engages in, contracts
2for, or regulates and requires the services of an appraiser.
3    "Financial institution" means any bank, savings bank,
4savings and loan association, credit union, mortgage broker,
5mortgage banker, licensee under the Consumer Installment Loan
6Act or the Sales Finance Agency Act, or a corporate fiduciary,
7subsidiary, affiliate, parent company, or holding company of
8any such licensee, or any institution involved in real estate
9financing that is regulated by state or federal law.
10    "Modular Course" means the Appraisal Qualifying Course
11Design conforming to the Sub Topics Course Outline contained in
12the AQB Criteria 2008.
13    "Real estate" means an identified parcel or tract of land,
14including any improvements.
15    "Real estate related financial transaction" means any
16transaction involving:
17        (1) the sale, lease, purchase, investment in, or
18    exchange of real property, including interests in property
19    or the financing thereof;
20        (2) the refinancing of real property or interests in
21    real property; and
22        (3) the use of real property or interest in property as
23    security for a loan or investment, including mortgage
24    backed securities.
25    "Real property" means the interests, benefits, and rights
26inherent in the ownership of real estate.

 

 

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1    "Secretary" means the Secretary of Financial and
2Professional Regulation.
3    "State certified general real estate appraiser" means an
4appraiser who holds a license of this classification under this
5Act and such classification applies to the appraisal of all
6types of real property without restrictions as to the scope of
7practice.
8    "State certified residential real estate appraiser" means
9an appraiser who holds a license of this classification under
10this Act and such classification applies to the appraisal of
11one to 4 units of residential real property without regard to
12transaction value or complexity, but with restrictions as to
13the scope of practice in a federally related transaction in
14accordance with Title XI, the provisions of USPAP, criteria
15established by the AQB, and further defined by rule.
16    "Supervising appraiser" means either (i) an appraiser who
17holds a valid license under this Act as either a State
18certified general real estate appraiser or a State certified
19residential real estate appraiser, who co-signs an appraisal
20report for an associate real estate trainee appraiser or (ii) a
21State certified general real estate appraiser who holds a valid
22license under this Act who co-signs an appraisal report for a
23State certified residential real estate appraiser on
24properties other than one to 4 units of residential real
25property without regard to transaction value or complexity.
26    "Title XI" means Title XI of the federal Financial

 

 

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1Institutions Reform, Recovery and Enforcement Act of 1989.
2    "USPAP" means the Uniform Standards of Professional
3Appraisal Practice as promulgated by the Appraisal Standards
4Board pursuant to Title XI and by rule.
5    "Valuation services" means services pertaining to aspects
6of property value.
7(Source: P.A. 96-844, eff. 12-23-09.)
 
8    (225 ILCS 458/10-20)
9    (Section scheduled to be repealed on January 1, 2012)
10    Sec. 10-20. Retention of records. A person licensed under
11this Act shall retain records as required by the most recent
12version of the USPAP and as further defined by rule the
13original copy of all written contracts engaging his or her
14services as an appraiser and all appraisal reports, including
15any supporting data used to develop the appraisal report, for a
16period of 5 years or 2 years after the final disposition of any
17judicial proceeding in which testimony was given, whichever is
18longer. In addition, a person licensed under this Act shall
19retain contracts, logs, and appraisal reports used in meeting
20pre-license experience requirements for a period of 5 years and
21shall be made available to the Department upon request.
22(Source: P.A. 96-844, eff. 12-23-09.)
 
23    (225 ILCS 458/15-10)
24    (Section scheduled to be repealed on January 1, 2012)

 

 

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1    Sec. 15-10. Grounds for disciplinary action.
2    (a) The Department may suspend, revoke, refuse to issue,
3renew, or restore a license and may reprimand place on
4probation or administrative supervision, or take any
5disciplinary or non-disciplinary action, including imposing
6conditions limiting the scope, nature, or extent of the real
7estate appraisal practice of a licensee or reducing the
8appraisal rank of a licensee, and may impose an administrative
9fine not to exceed $25,000 for each violation upon a licensee
10for any one or combination of the following:
11        (1) Procuring or attempting to procure a license by
12    knowingly making a false statement, submitting false
13    information, engaging in any form of fraud or
14    misrepresentation, or refusing to provide complete
15    information in response to a question in an application for
16    licensure.
17        (2) Failing to meet the minimum qualifications for
18    licensure as an appraiser established by this Act.
19        (3) Paying money, other than for the fees provided for
20    by this Act, or anything of value to a member or employee
21    of the Board or the Department to procure licensure under
22    this Act.
23        (4) Conviction by plea of guilty or nolo contendere,
24    finding of guilt, jury verdict, or entry of judgment or by
25    sentencing of any crime, including, but not limited to,
26    convictions, preceding sentences of supervision,

 

 

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1    conditional discharge, or first offender probation, under
2    the laws of any jurisdiction of the United States: (i) that
3    is a felony; or (ii) that is a misdemeanor, an essential
4    element of which is dishonesty, or that is directly related
5    to the practice of the profession. Conviction of or entry
6    of a plea of guilty or nolo contendere to any crime that is
7    a felony under the laws of the United States or any state
8    or territory thereof or a misdemeanor of which an essential
9    element is dishonesty or that is directly related to the
10    practice of the profession.
11        (5) Committing an act or omission involving
12    dishonesty, fraud, or misrepresentation with the intent to
13    substantially benefit the licensee or another person or
14    with intent to substantially injure another person as
15    defined by rule.
16        (6) Violating a provision or standard for the
17    development or communication of real estate appraisals as
18    provided in Section 10-10 of this Act or as defined by
19    rule.
20        (7) Failing or refusing without good cause to exercise
21    reasonable diligence in developing, reporting, or
22    communicating an appraisal, as defined by this Act or by
23    rule.
24        (8) Violating a provision of this Act or the rules
25    adopted pursuant to this Act.
26        (9) Having been disciplined by another state, the

 

 

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1    District of Columbia, a territory, a foreign nation, a
2    governmental agency, or any other entity authorized to
3    impose discipline if at least one of the grounds for that
4    discipline is the same as or the equivalent of one of the
5    grounds for which a licensee may be disciplined under this
6    Act.
7        (10) Engaging in dishonorable, unethical, or
8    unprofessional conduct of a character likely to deceive,
9    defraud, or harm the public.
10        (11) Accepting an appraisal assignment when the
11    employment itself is contingent upon the appraiser
12    reporting a predetermined estimate, analysis, or opinion
13    or when the fee to be paid is contingent upon the opinion,
14    conclusion, or valuation reached or upon the consequences
15    resulting from the appraisal assignment.
16        (12) Developing valuation conclusions based on the
17    race, color, religion, sex, national origin, ancestry,
18    age, marital status, family status, physical or mental
19    handicap, or unfavorable military discharge, as defined
20    under the Illinois Human Rights Act, of the prospective or
21    present owners or occupants of the area or property under
22    appraisal.
23        (13) Violating the confidential nature of government
24    records to which the licensee gained access through
25    employment or engagement as an appraiser by a government
26    agency.

 

 

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1        (14) Being adjudicated liable in a civil proceeding on
2    grounds of fraud, misrepresentation, or deceit. In a
3    disciplinary proceeding based upon a finding of civil
4    liability, the appraiser shall be afforded an opportunity
5    to present mitigating and extenuating circumstances, but
6    may not collaterally attack the civil adjudication.
7        (15) Being adjudicated liable in a civil proceeding for
8    violation of a state or federal fair housing law.
9        (16) Engaging in misleading or untruthful advertising
10    or using a trade name or insignia of membership in a real
11    estate appraisal or real estate organization of which the
12    licensee is not a member.
13        (17) Failing to fully cooperate with a Department
14    investigation by knowingly making a false statement,
15    submitting false or misleading information, or refusing to
16    provide complete information in response to written
17    interrogatories or a written request for documentation
18    within 30 days of the request.
19        (18) Failing to include within the certificate of
20    appraisal for all written appraisal reports the
21    appraiser's license number and licensure title. All
22    appraisers providing significant contribution to the
23    development and reporting of an appraisal must be disclosed
24    in the appraisal report. It is a violation of this Act for
25    an appraiser to sign a report, transmittal letter, or
26    appraisal certification knowing that a person providing a

 

 

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1    significant contribution to the report has not been
2    disclosed in the appraisal report.
3        (19) Violating the terms of a disciplinary order or
4    consent to administrative supervision order.
5        (20) Habitual or excessive use or addiction to alcohol,
6    narcotics, stimulants, or any other chemical agent or drug
7    that results in a licensee's inability to practice with
8    reasonable judgment, skill, or safety.
9        (21) A physical or mental illness or disability which
10    results in the inability to practice under this Act with
11    reasonable judgment, skill, or safety.
12        (22) Gross negligence in developing an appraisal or in
13    communicating an appraisal or failing to observe one or
14    more of the Uniform Standards of Professional Appraisal
15    Practice.
16        (23) A pattern of practice or other behavior that
17    demonstrates incapacity or incompetence to practice under
18    this Act.
19        (24) Using or attempting to use the seal, certificate,
20    or license of another as his or her own; falsely
21    impersonating any duly licensed appraiser; using or
22    attempting to use an inactive, expired, suspended, or
23    revoked license; or aiding or abetting any of the
24    foregoing.
25        (25) Solicitation of professional services by using
26    false, misleading, or deceptive advertising.

 

 

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1        (26) Making a material misstatement in furnishing
2    information to the Department.
3        (27) Failure to furnish information to the Department
4    upon written request.
5    (b) The Department may reprimand suspend, revoke, or refuse
6to issue or renew an education provider's license, may
7reprimand, place on probation, or otherwise discipline an
8education provider and may suspend or revoke the course
9approval of any course offered by an education provider and may
10impose an administrative fine not to exceed $25,000 upon an
11education provider, for any of the following:
12        (1) Procuring or attempting to procure licensure by
13    knowingly making a false statement, submitting false
14    information, engaging in any form of fraud or
15    misrepresentation, or refusing to provide complete
16    information in response to a question in an application for
17    licensure.
18        (2) Failing to comply with the covenants certified to
19    on the application for licensure as an education provider.
20        (3) Committing an act or omission involving
21    dishonesty, fraud, or misrepresentation or allowing any
22    such act or omission by any employee or contractor under
23    the control of the provider.
24        (4) Engaging in misleading or untruthful advertising.
25        (5) Failing to retain competent instructors in
26    accordance with rules adopted under this Act.

 

 

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1        (6) Failing to meet the topic or time requirements for
2    course approval as the provider of a pre-license curriculum
3    course or a continuing education course.
4        (7) Failing to administer an approved course using the
5    course materials, syllabus, and examinations submitted as
6    the basis of the course approval.
7        (8) Failing to provide an appropriate classroom
8    environment for presentation of courses, with
9    consideration for student comfort, acoustics, lighting,
10    seating, workspace, and visual aid material.
11        (9) Failing to maintain student records in compliance
12    with the rules adopted under this Act.
13        (10) Failing to provide a certificate, transcript, or
14    other student record to the Department or to a student as
15    may be required by rule.
16        (11) Failing to fully cooperate with an investigation
17    by the Department by knowingly making a false statement,
18    submitting false or misleading information, or refusing to
19    provide complete information in response to written
20    interrogatories or a written request for documentation
21    within 30 days of the request.
22    (c) In appropriate cases, the Department may resolve a
23complaint against a licensee through the issuance of a Consent
24to Administrative Supervision order. A licensee subject to a
25Consent to Administrative Supervision order shall be
26considered by the Department as an active licensee in good

 

 

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1standing. This order shall not be reported or considered by the
2Department to be a discipline of the licensee. The records
3regarding an investigation and a Consent to Administrative
4Supervision order shall be considered confidential and shall
5not be released by the Department except as mandated by law. A
6complainant shall be notified if his or her complaint has been
7resolved by a Consent to Administrative Supervision order.
8(Source: P.A. 96-844, eff. 12-23-09.)
 
9    (225 ILCS 458/15-30)
10    (Section scheduled to be repealed on January 1, 2012)
11    Sec. 15-30. Statute of limitations. No action may be taken
12under this Act against a person licensed under this Act unless
13the action is commenced within 5 years after the occurrence of
14the alleged violation or within at least 2 years after final
15disposition of any judicial proceeding, including any appeals,
16in which the appraiser provided testimony related to the
17assignment, whichever period expires last. A continuing
18violation is deemed to have occurred on the date when the
19circumstances last existed that gave rise to the alleged
20continuing violation.
21(Source: P.A. 96-844, eff. 12-23-09.)
 
22    (225 ILCS 458/15-65 new)
23    Sec. 15-65. Confidentiality. All information collected by
24the Department in the course of an examination or investigation

 

 

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1of a licensee or applicant, including, but not limited to, any
2complaint against a licensee filed with the Department and
3information collected to investigate any such complaint, shall
4be maintained for the confidential use of the Department and
5shall not be disclosed. The Department may not disclose the
6information to anyone other than law enforcement officials,
7other regulatory agencies that have an appropriate regulatory
8interest as determined by the Secretary, or to a party
9presenting a lawful subpoena to the Department. Information and
10documents disclosed to a federal, State, county, or local law
11enforcement agency shall not be disclosed by the agency for any
12purpose to any other agency or person. A formal complaint filed
13against a licensee by the Department or any order issued by the
14Department against a licensee or applicant shall be a public
15record, except as otherwise prohibited by law.
 
16    (225 ILCS 458/25-15)
17    (Section scheduled to be repealed on January 1, 2012)
18    Sec. 25-15. Coordinator of Real Estate Appraisal;
19appointment; duties. The Secretary shall appoint, subject to
20the Personnel Code, a Coordinator of Real Estate Appraisal. In
21appointing the Coordinator, the Secretary shall give due
22consideration to recommendations made by members,
23organizations, and associations of the real estate appraisal
24industry. On or after January 1, 2010, the Coordinator must
25hold a current, valid State certified general real estate

 

 

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1appraiser license or a State certified residential real estate
2appraiser license, which shall be surrendered to the Department
3during the term of his or her appointment. The Coordinator must
4take the 30-hour National Instructors Course on Uniform
5Standards of Professional Appraisal Practice. The
6Coordinator's license shall be returned in the same status as
7it was on the date of surrender, credited with all fees that
8came due during his or her employment. The Coordinator shall:
9        (1) serve as a member of the Real Estate Appraisal
10    Administration and Disciplinary Board without vote;
11        (2) be the direct liaison between the Department, the
12    profession, and the real estate appraisal industry
13    organizations and associations;
14        (3) prepare and circulate to licensees such
15    educational and informational material as the Department
16    deems necessary for providing guidance or assistance to
17    licensees;
18        (4) appoint necessary committees to assist in the
19    performance of the functions and duties of the Department
20    under this Act; and
21        (5) (blank); and .
22        (6) be authorized to investigate and determine the
23    facts of a complaint; the coordinator may interview
24    witnesses, the complainant, and any licensees involved in
25    the alleged matter and make a recommendation as to the
26    findings of fact.

 

 

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1(Source: P.A. 96-844, eff. 12-23-09.)
 
2    (225 ILCS 458/5-21 rep.)
3    Section 15. The Real Estate Appraiser Licensing Act of 2002
4is amended by repealing Section 5-21.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.